Earnings call transcript Q4 2023

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Operator

Good afternoon, my name is Raiza, and I'll be your conference operator. At this time, I would like to welcome everyone to Intuit's Fourth Quarter Fiscal Year 2023 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions]

turn of over Investor now Intuit's Kim I'll President Vice Relations. that, the to call Watkins, With Ms. Watkins?

Kim Watkins

Thanks, Raiza. CEO, Good Sandeep, call. fiscal our XXXX afternoon CFO, it's and welcome call. new you here to nice I’m to with on Aujla. Intuit's Sandeep Sasan have and conference Goodarzi, Welcome, Intuit’s the fourth-quarter

differ expectations. start, we forward-looking remind could There a are to Intuit's statements. factors cause our that our that Before everyone like materially results to number I'd include remarks from of will

You about this press our filings. XXXX, more can we Form release other our fiscal the learn in risks these for issued SEC afternoon, earlier and XX-K

All of We page intuit.com. assume Relations these no obligation Investor any documents available the to Intuit's statements. at on of website update are forward-looking

growth numbers metrics be available non-GAAP comparable prior current prepared will supplemental these the information year website on release. GAAP in the comparable associated of financial Unless copy presented metrics. are remarks period, rates to basis. the period business and our on growth non-GAAP all reconciled refer and and the numbers business today's a A worldwide and remarks this to otherwise rates ends. call versus Some after in press We've the our of refer noted,

the turn Sasan. call I'll that, With to over

Sasan Goodarzi

momentum. expert operating thank with the All on XX%, delivered executed our today. and Excellent, powering very right. and year We margin revenue Kim, joining for quarter thank the expansion, exited grew prosperity small as we businesses. strategy AI-driven you, us strong global for everybody, platform, you, strong consumers year We full be fourth had and a to

we This platform uncertain in growth. the including our maintain ability overall investing earnings areas drive operating important power while year, performance again, our our times. and diversity to the of demonstrates expanded margin portfolio, Our strength most long-term the to durable in past our of

that is year XXXX, another with uncertain. revenue environment to growth year fiscal of even margin the expansion guiding in macroeconomic double-digit are We and

from are declared with area. be Five years made Big innovation We the we work they where expert to exciting platform platform, platform that small and We've are do achieve a entering a data core the five ago, to in accounting them. to fueling consumers where businesses have strategy Bets. benefit AI-driven progress our strong the our AI global hard most seeking, transforming to do tax Intuit's and an work for we financial across and

fuel of you, hard we our in generative Now, automatically of for data on and a a future is AI. financial only talent, possible accelerated investments is their because the to and AI This work of, are creating where platform, behalf significant now done future done success. customers our investments our future history in of our

behavioral At longitudinal, incredibly and customers. the core our is has transactional Intuit for powerful, million rich XXX data. of relevant platform data

have we of businesses, and view small a XXX-degree their For business customers.

We attributes our experiences to have us data expenses, help XXX,XXX platform prosper. them profitability, streams, cash us per small business on and insights provide into customers to and income financial this enabling recommendations personalized and behaviors, flows, gives and

attributes outstanding tax assistant financial become platform, expenses, spending their per flow, history, consumer credit loans, in and including Additionally, financial pocket. history, to a on information, we tax have XX,XXX us enables and our which cash income,

own to marketing, flow, financial in models personal cash our are We and using data our solving specialize accounting, fine-tune challenges. tax, large that language finance

millions for innovation and benefit their our GenOS, the experiences for all customers of of of called In us AI-assisted create in accelerated a allows the we innovative powerful ignite at an operating introduced innovations years June, data allow prosperity. introduce rate. our made platform AI AI to small system we've to powering that and us consumers foundation Intuit's generative is data rich scale at investments that businesses. The over to

empowers GenOS AI Intuit to technologists generative experiences. create breakthrough

the financial tools with Intuit as across serve own cost-effective teams new powerful they build, our our speed. new and to other unparalleled giving design, need experiences way. together which unlock in a includes customers, approach, platform to resources our LLMs, opportunities test these in This a as and well using are GenAI, deploy leaders from We those

era We believe changing. years are entering the Intuit’s game most yet several be exciting will and next

and you we’ll Day, We business On hosting will GenAI September years Xth, ahead. in more across be virtual event we our drive look exciting to Innovation innovation sharing will growth then. Intuit where a the unveil with it platform forward how

one to Bets. for in Now, customers driving Bets which growth of and our some recent Big today. our examples our turn would Big to are highlight let benefits I of progress me like

are, As business a the small mid-market. growth, business Big smart connect small the and experts, money unlock to our people five be benefit, of disrupt center Bets reminder, revolutionize to speed decisions,

Our by capital and pay manage Big our become Bet business the fourth world. customers, confidence center of is get an in helping small to omnichannel new get customers paid fast, growth, with employees

getting digitization, to our customer, Today, growth discovery, creating quarter. upfront, to payments, volume estimate, paid drive helping of all deposit, from getting In adoption invoicing our drive offering, this XX% leading continues to auto-enabled payment payments, an online to paid. and instant are payments easier innovation a total

recently flow. making bill progress pay automate opportunity as businesses the of businesses, We the of still see firms via improve beta and significant of accelerate payments other ultimately are between We XXx. their checks. digitizing availability our We and expanded BXB XX% a paper solution by transactions to small pay cash tremendous native

well to source are customers we of to for and way business. truth our Mailchimp, run becoming our on them the grow their help to Turning

We Mailchimp. have with priorities three acceleration

platform. Mailchimp First, delivering on our end-to-end and vision of growth an QuickBooks customer

capability holistic And full This global suite. last mid-market implemented the and growth brand marketing on eCommerce AI a a intent the automation, Mailchimp, we go-to-market Generator, customers email marketing disrupting our voice. campaigns industry, first in quarter, generative Content faster with accelerating approach. to third, by and based create CRM Email Second, developing enabling

its that we a small quarter, to email product business announcement an of AI generator, uses create the to launched This can beta new send a which automatically customers.

conference advanced segmentation, on features Mailchimp to more the recent new and We SMS a of designed support and real e-commerce over more time calendar reporting at in marketers, custom our data and e-commerce marketing. behavioral based needs view, analytics, advanced London, including updated also automations, announced XXX

and changes trends year-over-year in which trials Lineup this driving growth, free customer quarter. paid accelerated positive are

our retention to in make highest quarter two rate this continue it’s progress XX-day mid-market, the We been in years.

We have translated five into different product languages. also the

share more will across We five Bets delivering our our outcomes Investor on the Day. we’re at Big

complete GenAI durable platform across AI-driven they them help high decision and velocity. in every financial customers’ pockets, up, Wrapping expert with more our products, ensure put make. in are will focus our moving save innovating money we time, on our with This at strategy us confidence and

is shift, As power for technological of and we we this customers positioned are leadership next to communities a that lead AI. well era team our that we prosperity with the built serve for

hand Now over friend. Sandeep. my me let It’s to great it call, have the to on you

Sandeep Aujla

I'm to total to many forward I GAAP and non-GAAP the Sasan. meeting XXXX, expansion, margin excited and revenue XX%, XX% results of in strong growth of EPS here strong you, future. look be respectively. We XX% delivered of including and fiscal Thank you in and growth

ago diluted a up year. versus of XX%. high-end GAAP-diluted that last loss For range 'XX, the XX%. of per last delivered non-GAAP billion, loss including of million GAAP revenue year, up Non-GAAP income of operating results income a key $XXX $XX $XX we up metrics, guidance the share versus year $X.XX earnings of versus $X.XX million versus a per quarter of $X.XX of and fiscal of all operating million fourth $XXX our year $X.XX earnings share XX%. last $X.X of across exceeded million

and the to segments. grew year a full turning three the year, quarters full quarter Small year. and business ecosystem which grew Now year. during revenue Self-Employed full revenue Business versus last In for year Online Mailchimp's points included benefit four XX% the for Group the and XX% the of XX% of quarter revenue XX% during the this from

of source With globally. the focus three-fold, the goal our Self-Employed expand grow connect Business businesses, and core, strategic small Small the within of ecosystem truth is for being Group and the the

in quarter to year Growth mainly and grew core. and First, shifts. growth, the customer mix driven XX% fiscal and on accounting in were QuickBooks growing effective we revenue Online 'XX. prices focus the for higher continue fiscal XX% by QX

services by and tracking. driven time focus we ecosystem. continue Online in Second, XX% to on Mailchimp, capital QX payments, grew payroll, the connecting

customer effective increase in adopt volume customer was growth. Within in by reflects driven in offering QX. growth more For cash reflects paying grew per shift an quarter as the flow payment customers revenue Online XX% payments, grew as the and customer. by ongoing their customers' capital payments, to manage this Services revenue in 'XX towards payroll, full revenue Mailchimp, in our time QuickBooks year, a tracking. increase offerings. payroll driven mix Mailchimp well as mid-teens our and growth fiscal and growth prices adopting payments Within quarter an payroll, total solutions Growth higher-end higher

Online executing make established we progress refreshed other Mailchimp which leading our international both with continue by Third, strategy, to product QuickBooks leading to we in includes markets markets execute and all and Mailchimp in continue localized on as and our lineup. globally expanding with

they in business small types online of to to XX% total as our The of constant and look international their 'XX. currency resonate ecosystem basis, all grew environments. grow customers and QX a revenue cash across fiscal On in flow improve with XX% continues business power economic platform

and Desktop grew in to manage success adopt remains XX% them revenue the Desktop Enterprise QuickBooks platform to quarter multiple the platform our customers' offerings Our to and see revenue low continue the we in business. grew fourth critical across their Ecosystem XXs.

are transition a recurring customers offering on for to that subscription way of remained three-year two-thirds We a approximately desktop through the model. license-based

to value. multiple our principle raised prices products with consistent also across for desktop price last We our September,

expect the year the we we part ahead, continued growth as ecosystem revenue of transition. complete remaining Looking strong desktop three-year next

seamlessly is to desktop to offerings. help focus online our online to our and continue our out customers building ecosystem migrate Our

We ecosystem longer-term. to our catalyst continue growth online be to the expect

to term. and year Looking XX% anticipate per Small in XX% revenue of long ahead, Business to we growth Self-Employed continue

in was Now Credit insurance, $XXX by and down X%. XX%. Intuit's macroeconomic shifting loans, basis, On loans, QX represented XX% million year auto in Credit revenue to QX, home in growth of Credit product loans Karma Karma a and billion credit decline of driven cards 'XX. in revenue down partially Credit Full in headwinds total personal Karma by Money. the auto primarily offset delivered fiscal was Karma. revenue $X.X

core seen our to across which during continued QX. year-over-year versus performance QX improvement verticals, have led in stability We the

nearly nearly revenue Karma’s XX% loans cards and fiscal and For represented XX% credit in Credit of 'XX, personal respectively. context,

continue Karma growth term. year XX% Looking of to XX% Credit long anticipate annual revenue per to ahead, we

billion Now began Each shifting revenue Consumer into ProTax in been has Group pandemic Group results. to $X.X up X%. years volatility the since four groups. 'XX, introducing ago, unique fiscal Consumer and season was Consumer tax

more four-year However, with in average line over trends. this annual period long-term trends are the

XX%. revenue years, average aligns long-term XX% by Group increased expectations the X% four Consumer our an which of with past to growth Over of annually,

am I the while team with customers assisted of season, TurboTax tax unique year, segment a this revenues proud the which was transforming this grew the While Live, XX%. made grew by progress XX%

in ahead, Looking drivers. are confident multiple we growth

see a our confidence powered runway given First, with by to TurboTax Live, experts for our use ahead and of us customers. human large both we to deliver GenAI AI ability

full-service has are product the which our a highest recommendation based We scores offering, fit of Intuit on product year. in good this product investing at scaling market any

following trying and their we Second, filers our access members significant Money. And Karma third, Credit ahead, money TurboTax Karma giving offering, pilot to a successful this opportunities to are scale see we driving to with Credit year. TurboTax business faster tax

long shared, term. the to annual expect revenue Given I X% growth growth continue XX% the of just Consumer to Group year per we over opportunities

$XXX million Turning was to 'XX, the Group, ProTax fiscal up in revenue X%.

share financial principles let allocation. more our me capital and Now on

on market principles investments other conditions. decisions, and months we cash We our over long-term sheet. finished are are and approximately debt $X.X quarter balance the commitment and XX Approximately remain next is debt and $X.X subject billion refinancing our to opportunities $X.X unchanged. billion our guide billion with the of Our evaluating in in financial the maturing and

share durable each to other This repurchased particularly million during XXXX. in recently confident $X drive last three be and our pace finalized of a during quarter and market fourth Board executing on We accelerated stock GenAI. our $XXX a our XX, year payable -- growth, the on continuing of fiscal increase market Bet year. quarterly The quarter. plan. dividend I the to the per We be conditions one $X.XX across October 'XX. innovation, represents including we in investments with the strategic is Depending billion of approved factors, are and and XX% to Big feel versus aim making

for investing future a both proven in for and is the important what and have good while playbook the and spend to deliver growth. most times. difficult control economic We manage operating short results long-term We discretionary in strong for

Our goal remains this of uncertainty for position in Intuit to period of macroeconomic from strength. emerge a

guidance. to on Moving

growth $XX.XX XXXX XX% billion total company includes XX%. billion, a of revenue to of to $XX.XXX fiscal guidance Our

to Self-Employed Group, growth XX%. $XX.XX XX% of share revenue decline XX% to for to includes X% X% the $X.XX Credit guidance XX% Our growth earnings GAAP and to X% $XX.XX of of Consumer a and of share Small Business of to for Group, per XX% to Karma. of X% XX%, a for non-GAAP to the of and per $X.XX, growth earnings growth

GAAP in fiscal of We expect XX% a tax rate approximately XXXX.

guidance Our per $X.XX, quarter share of growth per $X.XX first XX%, share to GAAP of revenue for and earnings 'XX includes non-GAAP to fiscal earnings to of of $X. the $X.XX XX%

the approach taking with given guidance uncertainty. prudent We are macroeconomic a continued

the to to fiscal we IRS approximately tax expect which As to million pay relief. cash deferred related tax in disaster-area were a of reminder, fiscal due payments 'XX, $XXX in QX 'XX,

full and details our fiscal QX guidance sheet. as find our well You on in can XXXX as release fact a press

I'll Sasan. it over turn that, With you, to back

Sasan Goodarzi

important Thank $XXX AI-driven look strategy billion to Investor Innovation today's Intuit penetrating forward making global creates our Xth, September are assets our financial at and our XXth. platform with uncertain attendance up, on in platform for platform Great. on GenAI our to a team the our The and and we to growth of our you. macro-environment, progress our our leadership and in Intuit we that TAM. are more Day flywheel accelerate I in Day ever of our customers. innovation. technology wrapping than the expert confident investments September your are and And combination mission-critical In benefits Big our driving Bets, strategy five

it With up open let's questions. that, to your

Operator

question [Operator Keith we'll take Instructions] And our from Stanley. first with Weiss Morgan

open. is line Your

Keith Weiss

question, start to getting for numbers a the nice inbox with was ahead My you and forward moving of those consumer consensus nice kind to guide. business guide and see Thank filled guys questions Excellent. about quarter, the EPS really taking where a consumer up see up. and the

XX% talked below And X%, people to too is? going be to difficult longer-term think What tax are hard X% of tax You've to CAGR about are Or that X% Did season. understand why you trying you levers year you. was XX%, four-year to a to a keep need in Last there, for was this units I framework. the but this growth longer-term guidance is year looking what so that like? the is Thank pull on refill it of pricing? we do the tank targets? that's to it, those what season terms underperforming

Sasan Goodarzi

you thank question. your Hey, Keith, for

to me but give me it. Let you headline, allow the unpack

we think I headline simply just the being prudent. is are

future Our all. focus on bullishness growth not change at does and our

that. Let unpack me

TAM, is First assisted $XX foremost, look billion it you and a of is when $XX consumer-assisted there segment. the and it segment of segment, and at billion business is $XX billion

year, about is that in shoots second this why And years digitization and accelerate with three green buckets, and this would some in will than is two put which the secular ago, business of even we the towards segment. to Karma are our it And the assisted possible continue what's in we four and come. years shift probably we more were as only probably then saw I Credit to context, biggest the bullish

side manage one their platform In Credit Credit get just consumer money, their breakthrough place. Karma as done and a from going on and scaling several that our this of rapid was as platform on within our that we the one past year we a a financial can members their model a TurboTax business create moment that years Karma became of confidence had up number both and Karma, Credit of consumer massive are to manage customers taxes side beyond. the a the reminder, Karma gives growth Xx lives, bought where we the experimentation, lot and customer just year who us where product versus into in vision was Credit After next

parts. three and segment be second going that's to The assisted is in

First market do past breakthroughs we had and full our service, biggest focus scale. at foremost was fit is had we to product how this in how scale. We year actually some

we you are best recommendations our heard Sandeep, had significantly as we from in any coming company that year. product across score In leaning of and the into product the fact,

looking tax. The of not come market TurboTax business learned people, fit to both We've TurboTax business We across offering. going of tax. in business have be had our not for never going get That product launched second is QuickBooks and with directly to Live millions tax. if the and available, market to is and we an platform will thousands, to hundreds

and We we it. scaling year will next are

found learned is the will there would things people Google, I segment, San say while going we been experts means, search, look home are we've we've local in United and you in What me, household will big thing, miles in local last biggest the States pro on fact, to I'm that year that good matters. in close on Diego in a every the and and and of never been assisted if XX that one have, is the year. this last when we're go in from so at we local The they the

we lot simply when so shoots given was prudent in at at we look and question segment the our Karma, look with guidance, of the future it in we're year the essence where had. this our just and coming And us the assisted confidence and I your I started, year that being I'll Credit of about as end gives a green

Keith Weiss

Excellent. That’s it Thank for me. you.

Sasan Goodarzi

you. Thank

Operator

question Siti next with from Panigrahi our take we'll Mizuho. And

open. is line Your

Siti Panigrahi

payment about have bill feedback think pay? the you. earnings your powered forward ask you're have Great from bill now money QuickBooks customer working end-to-end pay? your sort side accounts. pay, you should how and business, your the with as small the full management, beta your by native solution AP bank pay, we now congratulations invoice And legacy the opportunity now of switching from broader to And want Thank vision to call AR with I you Sasan, you then about cash looking flow on that been and native have have you. getting on quarter bill payment and first then what you Sandeep, bill on near-term

is the terms that vision whole of ecosystem? your what monetizing broader So in

Sasan Goodarzi

thank question. your Siti, Yeah, you for

take it two me in Let parts.

of in you've between done year BXB and to us respect past that the has been manual. and heard checks last sort of about all digitize back terms in XX% one with digitizing forth small the goal to work to and that. what today pay. First And all plus of all is of foremost, do manual talk of needed bill our element gets was the paper launch businesses of And to we

it the gone getting just place what better think even been we would I beta, is headline available are to our the at we're thought, I we all to and has -- have give soon. our customers now a XXx-ing hope and we've of we where feedback than

we feel good gotten how seeing that fast it platform on the we based Bill feedback what capabilities about have we've very So in from that we're build the customers. and and able are we to Pay

their your have for to help not to out to fact, that question, to a truth set second capabilities we of vision do of that the our years. that I in our but five-plus customers manage advantages is able center to the that, what's is back made a be you're back end-to-end. all in manage source be the business to take small think be have And and that now grow we've the employees. customers, of for I retain small their deliver to I us have to right. business important, to data we think customers, their growth. capabilities their to be investments you flow would truly order particularly, their And only And in business the have and to last AI those and cash We customers, able market

way it's And you the of I real attend our -- think replay would Intuit And time, watch on you if really can and and you Day. data, to how that's September their movement I Innovation capabilities our GenAI all delivered moment attend cash intuitive, at flow customers will and and X when just of see encourage easy a help of manage digitize so AI money with so truth. in we a

in innovation about this that in the we experience included about what's of none X to as the we're as in is guidance. ahead. about it coming So years we world excited fundamentally at way, going But September let is the revolutionary we that the going we're look possible by explicit GenAI around be our And believe you're create think quite me, future. very year, our potential to

Siti Panigrahi

Sasan. you. Thank Thanks,

Sasan Goodarzi

You’re very welcome.

Operator

with Brent question our Thill next Jefferies. And from comes

line open. is Your

Brent Thill

in room Sasan, you prudent? wiggle when tax I'm are in the just in by this guide. or you you mean guidance through than baking the mentioned years more past you prudent curious, walk year in what can

Sasan Goodarzi

Sure. just of year, that, was Well, down now what we've analysis of so important we And nearly all point. came working couple to driver their a the be past dollars This to that of of to folks the stimulus driven. there. of, number but had get pandemic certain IRS know, on question. and continue that points. be think you Great and based first will estimate is you a which it it's we credits, we that tax in we'll X I already done, are back take down The I'll all, do-it-yourself category start returns, we

it a the what straightened from sort then And when so season. you look unusual that back heard very sort of last step of created four-year tax a out. you trend, just at But Sandeep, and

And being of One, And prudent part all deliver results. just we all a so not of our couple this want banking of innovation IRS in on just business off is things. numbers prudent we year. growth is to mean must us the doing X% to by to that a assuming this and what so, coming that the by I shared this of you XX%. grows we're demonstrate paying not because that's we year, And really we're that

prudent. being just very And so and intentional very it's

not TurboTax, by way, mean it's our Business. Karma of what thought TurboTax, way of definition prudent. about the the sort are it's Small But the Credit by guidance and about, it's As that's holistically, we those -- just the think we we

Brent Thill

Sasan. you, Thank

Sasan Goodarzi

Yeah.

welcome. very You’re

Operator

next question Michael from with comes Wells Our Fargo. Turrin

Your line is open.

Michael Turrin

Thanks Great. much. Okay. so

delivered margin this past expansion outsized You year.

a environment to year, Sandeep, if one tougher on the of principles, cost guiding realize can throughout allowing you focus mentioned controls, speak you what's to it's just maybe, guide You've the the given but for expansion on margin as margin we side? about starting maybe a the should continued as the think allowing there what's And continued break expansion point operating here? upper for margin XXs you how into Thanks.

Sandeep Aujla

Thanks And for the remarks. let planning unpack it [indiscernible] go one of a as the shared me Michael. needle through process, if look bit. question, and of And I we process, near deliver biggest We both are the so growth prepared that levers a those little in you for term, Big Bets in at and GenAI. movers make the And in investments for funded sure to the durable long company. inclusive growth success, the term due

platform. guidance of reflects reflects investments and, XX strength and of bps frankly, quite our the XX the those resilience to So

is a As points delivering this of expansion we're reminder, X.X years. expansion three of delivered the we the an last over on top

ahead, platform, are for that plenty grow AI-driven across I technology, an gives at And operate me expert it, look across really, to is we with we look ecosystem revenue, as an as our a customer confidence runway success, across to and marketing. of see slower than in therefore, to margin expenses I financial operate expansion. I continue accordance principles As implying us what

having also -- market in advantage us an advantage from us a time addition gives a as operating scale competitive opting for to giving as as faster getting in ecosystem, a leverage we So it business. to as

Michael Turrin

you. Thank

Operator

UBS. Our next question comes Taylor with from McGinnis

open. Your line is

Taylor McGinnis

full for the Yeah. question. much really which taking focus Business guide, Maybe on and strong. Small Self-Employed I'll so was my Hi, thanks year

the I comfort ads, there's us each in bunch are levers of understand how on there But the guide? a you you're growth So online what moving are seeing based price. giving you what's to between contributing durability customer and help the able of And environment, pieces services to in and know those of those shift, mix attach drivers?

Sasan Goodarzi

for Thank questions. you your Yeah.

Let us me to anything. in and if start want please you Sandeep, off jump add

we and value. have lesser on our at pricing all, we majority company the mix want the level drive the where of but volume we focus from to and of First price, framework a for from always part growth

growth mix look so year our the And when and it growth, year, and drivers by to we from year, this extent way, from last customer to from compared is this a is at it price. coming coming lesser

opportunity adoption that remind I you even that in at this just picture, have next you we of a drive we're a would of but services at midmarket. new to that a and penetrating are of portfolio except is have payroll services these of to to lot ARPC the more. they With also, the significant big capabilities where in beginning just innovations four Big the of around lot market of Mailchimp flywheel Bill time as to we customers But because pay beginning tracking mid-market. just the what's platform I opportunity a mentioned, although coming we're use year, to the our and the years Pay our now when context, a And mentioned. further three three in, of look the plus, at and to digitizing just BXB lot from opportunity just years payments, to that I our five the a we possible

strength be the that, that from of to what's data So are and the most growth But drive that those customer you'll takes none mix. allows we able the observe the at look with of that we of AI drivers. because and of services have, delivering growth generative possible the on us by it portfolio AI the way, of into because experience when as account experiences And our mid-market, into September of to and X. our you the future look main we're

Sandeep Aujla

XX% those committed And our would -- upsell I our offerings cross-sell to XX% for for the opportunities platform to across platform customers that algorithm innovation remains unchanged. price to we Taylor, more for as ARPC over our us opens and up customer on growth Sasan our term, ahead. growth. look the gives That And is add, as and we remain value to across aperture us long as us of really, mentioned, our

Taylor McGinnis

Great. you. Thank

Sasan Goodarzi

welcome. Very

Kim Watkins

ready our we’re Raiza, next for question.

Operator

next And Kash with Sachs. Rangan Goldman from comes question our

Your open. line is

Kash Rangan

you very hear Thank Hi. much. you I hope me can okay.

what the that Sasan, read my proactively So quite a seeing? everybody's know on up or you confidence that are of business any that got like we've the fiscal the of SMB are you the Because it renewed are it doesn't addressed seen be this, to expecting, in some be What ecosystem you've that been great And indicators guidance but the going that what apologies in Karma of in continuation already again. But definitely four environment, you've your the for the SMB recession not quarters. is more if give Credit indicators ecosystem. last your I okay? happening. caution a some see reflecting seem forward-looking bringing you're of 'XX to we

Thank some so thoughts much and would Just great. be you there congrats.

Sasan Goodarzi

Yeah, for you sure. you're my Thank your and friend. loud clear, And question.

XX% was they cash I would just lead this share this specifics Small be continue me the The environment. but Businesses healthy, last of is let with Business. it cash time reserves generally, flow start year. they're to -- So in would is And of Small what challenged I with that

-- drive employees fact, this they for However, in is versus them still The need Small growth, market for growth. strong. quite environment, a are hot, when looking their drive pre-pandemic. the deliver than Businesses finding still finding which that's in and of can And better they then able because job in customers it stronger terms their labor and for good was is to what do to

advertising, real I that are weak transportation, certain is say small thing would very weak, the last very within just is there are businesses. estate, And sectors

started, aggregate to compared healthy the I'll what I but that's with still So picture. where struggling, end pre-pandemic.

consumer I'll hit two points. side, On the on sort on let Credit me of different hit Karma. quickly

hold, will you and to we're with we eventually know, that good and innovation the really And the we'll in share been And have a app. app. stability our As scale on X actually we're getting and it on that Day, mentioned, where Karma of working small cohort we're begun redesigned at on seeing there's we've that redesigned one both customers roll Sandeep it. entire engagement what Investor to and September out is seeing very exciting things some Credit is focused we

headline couple helping excitement would experiences, But us is is And with Karma the I none I guidance. consumer, gives all on us is just then Lightbox lot the by GenAI Credit of that of in along innovation our of with the a our which, Credit are around and where with coming. Money that, If say. innovation lots the of our way, and of a future, and we stability focus things coupled with Karma in

about like XXX] credit If carrying They're back of the up year-over-year. March scores have are have about to Gen XX% balances. most, largest band you to balances last And the up XX XX%. on are, XXXX, look [XXX Credit of And average, Z average. $XX,XXX credit points. on gone the are balances down (ph) up the

consumer. level but strain of So job on market have certainly the still is still good. People some there's jobs,

Kash Rangan

so you Thank much. Brilliant.

Sasan Goodarzi

Very welcome.

Operator

Stifel. Our next from question Reback with comes Brad

is line Your open.

Brad Reback

business. Sasan, Karma world Great. is where in Obviously, Thanks. live think digits mid-single Karma that than the is you growth zero? versus a Credit meaningfully we rates the up Credit world when are today Do on interest in different you long-term acquired different rate commentary. of following the

Sasan Goodarzi

hanging, your in frequently And you you XX% this 'XX, year, how that share Brad, many there's I in question. engages, And in that you not the customer to where time on talk how is Yeah, a when things Investor model which past every our of a can is XX% would there of prior with couple short were customer no. have, Day, bullish we fact, our than very thank down you, years revenue per benefit fact, two had we actually growth -- about growth. The Credit a they from. average at the the higher a answer results we is just in model more leave engage. year-over-year, Karma monetization but for for members is We're frequency And engagement and business.

is is is areas, the all many innovation. tight. because engaging that? but of why credit in of Now because It's customer still It's our

and Plus monetization acquired growth So you truly when rate. remind XX% seeing that that, that business with this from one what when actually the the that back we the plus platform, and to easier need the accelerate innovations credit with all begins to September to want make on going created that's products that view more was some manage now, of drives of financial customers we the stickiness, they day our Credit the that XX% and integration you're engage data GenAI I'll Karma. in vision one accelerated coming will experiences, and need, our X, consumer AI to more they they stability for TurboTax this And capabilities to which find open we're their the that we have benefits that in are money. I new earlier, as see up, to will said it

long-term all of unchanged leads is completely relative the so view XX% that to Karma. growth expectations our in Credit XX% to to And of

Sandeep Aujla

even because of a they're When to difference and small And a scenario Brad, I consumer one a add shop rate the are in terms higher, difference the you rates has higher have bigger that this thing in around interest line. a asked to bottom propensity which interest about the their getting, because rates higher. in the to they're interest would a paying bigger rates are improvement

becomes in So in important higher critical the the user a fact, environment. to product end rate more

Brad Reback

you Thank very great. That’s much.

Sasan Goodarzi

welcome. Very

Operator

Our next Northcoast question Kartik with from comes Mehta Research.

Your line is open.

Kartik Mehta

really compared about will of expectations change well as your advertising and perform talked message year, one little trying Good from at is wondering the I'm more TV on strategy least get a how business. wondering, you're full-service well? to full-service I'm being full really service, things on And Sasan. on the the year at And you're -- growth the product focused, consumer all prudent -- your out. marketing evening, This as standpoint quarter to this you this a how revenue are did product? the bit

Sasan Goodarzi

Yeah. Great question.

helpful you product with year get within is give markets, of our how it And We find think We local I full to and it's as answer customers a with the virtually a And intentionally. lot service find has what same and AI-driven. marketing. vague year. to all around hour came lot day. you that this know, into me somewhat you'll somewhat learned Let has that we We an offering that I learned a also lot things have can and full-service or an scaling offering. health done which mentioned a earlier, do

I'm we locally City, I'm our all Well, there's the the of TurboTax we've are somebody experts can go see but I never San provide start in marketed Kansas households to of in If XX way. many miles if even to within in there. see that have States, that if experts, if I Diego, of that United

our marketing going inform forward. And to going so that's

either/or, lot and a we it an of so that to terms there's in our evolve and, we're becomes it. about excited how So not marketing, an learned and

Kartik Mehta

Thank you.

Sasan Goodarzi

welcome. Very Yeah.

Operator

comes Our next Materne Evercore Kirk question from with ISI.

is open. Your line

Kirk Materne

next sort monetizaiton. for the product, sort work more around you much. hear to aggregate what to love quantitative into Mailchimp little as on Thanks. side. Thanks small Qualitatively, of this maybe too give continued year? you're of you on acceleration in not of I'd Yeah. do very lot is look don't business counting you the important the and the at much of How to Mailchimp Sasan, just a bit guys have year you done detail get want a if a

Sasan Goodarzi

Yeah, answer question, for it's your to threefold. really Kirk, you -- It's thank your question. really

you growth one to can small we help grow in business and a so made their First this as manage flow this manage in cash acquisition place, ultimately really data, know, all we has of all platform, And place. foremost, one be AI their GenAI. been investments the to and workforce able create to in key now one our and accelerated their and business

of make Day this this Day. That's Intuit September our both X, you'll first actually number so and Innovation and area, one. we is Investor and in And on foremost at want progress to significant see some

as is, we that the had a features ever second in June updated made The history. largest we released to XXX GenAI-driven mentioned in top announcements weeks multiple that We we Mailchimp's we've that. that prior the of had had of on earlier, couple I and release new had

in focus only the with because to is monetization, we've particularly mid-market. second QuickBooks' our fuel our their but mid-market, it very our getting it will these customers benefits which focus us not is will the help with had adopt adoption, So focus to that similar where success, is help

and price is internationally. That We've third testing had lot doesn't because of class in internationally. mentioned price done is the a five then international. we've been we've And studies the doing is product. And I horse the also languages a more like work. coming. earlier to localize lead Mailchimp lot and one price

countries be Some higher, be some countries lower. should should

lot of a And that in and be learned our of many to of going year. so some terms we're testing this we've scaling

in to are areas the just carve out were sort I are -- those the that So coming your years. those focused we if question, are three big of very on

Kirk Materne

Thanks, Sasan. Great.

Sasan Goodarzi

Yeah.

welcome. You’re

Operator

Deutsche next Bank. Our from question comes with Brad Zelnick

Your line is open.

Nick Giovacchini

through appreciate taking Brad It’s decelerated talk how on the and Congratulations growth Thanks. beginning everyone. International this I Giovacchini forward? going Hi, year. on question. growing Nick since to of you the Can the us welcome, end Sandeep. evening. the for you has the you strong year, that see

Sandeep Aujla

On fit. And is we in where of both Mailchimp the markets the growth. as product I our international question, to couple refreshed at have Nick. market lead QuickBooks to growth, with our things and spear. with the Thanks tip focus, international shared the A strategy areas for other Mailchimp earlier, of on in lead the

decelerated of of growth some reasons, and a Sasan shared. couple for that Our

capital As geographies, price. we historically, the the local some was these in rightsized lead in for all that factors basically on what price based simply geography. Mailchimp should in looked based these be into the GDP rightsizing other competitors the market, converting and it US the in pricing same at currency the per we price. the was into the price We went and applied and It the we of in, the on and

what trials experienced initially to the is we discounts as is better our doing and retention, have free the That years over -- product cetera. do more join around. people into product introduced they or come in XX-day et forwarded leads we QuickBooks, people stick a that folks we Secondly, when of

temporary as our and are I headwind These product which lineup, describe to what growth. the the and of a all in is the would terms in factors international we're all leading improvements making the Mailchimp

Nick Giovacchini

Great. Thank much. very you

Sasan Goodarzi

welcome. Very

Operator

question next Research. Alex Our comes with Zukin from Wolfe

line is Your open.

Alex Zukin

the gives functionalities has are it both the what really How coming And that's what some functionality to there congrats how Is obviously, table Thanks of market, potential the the for in GenAI you're the there to you and the I'll of my kind group, just for? is guidance payment or It for that methodology then some gives to on like you confidence strong. and the that target for -- market, taking well. prudent Or was year. why guess for the specifically ex to questions want going just talk is And right either -- kind disruption what of that prudence the role for Mariana you're of of growth about maybe seems of that Sandeep talk a do guys. maybe leadership but as to where seat, really prudence bring Hey, guide guys Mailchimp CFO next SMB now I I -- that with guidance? about accounted SMB in? guide really into in coming the question. much dovetailing talked way? nice the about that, guide, guys intact, the to fit the new to you rate. that

Sasan Goodarzi

more it the around Sandeep question Alex, specifically broadly jump can answer then take and I take in question guide. your leadership the and and let

I'll, opportunity Let that well. in me that course, leadership the And in of we've company. changes had the talk Mariana about take to this include as

of leadership of succession is all, one as greatest planning. superpowers First company and a our development

operating levels roles the factory. architecting do. company, moves. talent, key staff way, and on that are being XD very at ultimately, And system, several top One development multiple mobility times we by planning, reviewing and part which, intentional of a very year, time, in focusing a focusing spend to our that about areas we to at But is why is we focus in a days have Intuit of staff succession plans the my hard be with leadership at goal four starts our the of the which on is is all as our

By officer we Vice senior there's of say happen our because that technology roles, changes the only job my fresh -- it believe is would second the of areas an of you you within we're a mobility because bigger lot as of for I and businesses above, to above, our mobility very course, about ready way, But potential the we thinking in is the important. training staff. see to, typically and very perspective, that thing to also and which a are President and period, The fresh I'll a is example. very have visibility intentional important is so an five-year in company three- leaders use focused don't be myself on

was I job the X.X CEO stepped in years. Before years I into TurboTax ago, three for

was I for was two years. in three QuickBook for I -- running CIO when years the Small Business

changes said, of that's and right up that mobility. and So sometimes an mobility the the example to With company. is of our within all just

because Sometimes folks them. we the outside for that best be may of fit company celebrate the on roles taking

the job unbelievable the unlock became I I she's that fueling familiar as will hired in year Mariana, When Officer leaders Small have now back I and growth. started there. make actually role, leaders, And next And to specifically running do about I an you of she excited context, When the and it look Small with across was So home moved into just with Small was very Chief the CEO, of of real. where lot very is to Business. now me touch a we our what very and CEO she Business. Business her She our the let on into Mariana three Development going company. when she's at Product done confidence our to innovation

later, today. years. Mark we We in be our TurboTax live look godfather talk he's ago. that with home is left and I company. actually Officer after decade lot TurboTax. running you promoted started few and him I the When years at And with he going in TurboTax, Customer of to Chief a the And about now Success back platform Mark worked a three a of for TurboTax -- then our him

versed well business, then of also our very is them Chief only the and CTO right-hand but live. the Balazs, with the the role, future, data where our just driver not We company. a in I So to disruptive upon which worked growth Mariana's across he's Architect And person, fueling role, move TurboTax. Alex then him been broader he's in innovation

of is for leadership We understand ever their the that bit wanted team experiences. and fairly the AI I development succession have a backgrounds core we've that you him strongest planning of to believe The competency. that sort go reason built that all for I we given and CTO just to And had through moved into the our era actually of is role.

Alex. that as me other have answer of context, let So the with question, Sandeep your part

Sandeep Aujla

actually, what let me additional to never one Sasan point touch it's about on And added, Absolutely. individual. one

We are around strong our well. leadership General a system, and Manager have teams and as staff we CFO

the back getting your to So on guidance, question Alex.

four fiscal Mailchimp So just points acquisition. those of for benefit of from context, the Small Business grew group the XX% timing the in coming 'XX, the with of

a group we run in XX% with subscription-based. the in And the as Small organic are you about the group revenues rate. that's of is the have So past XX% shared Business -- with

on. as mid-market predictable. focused, QuickBooks makes touched growth as the makes we that results as And well nature year's highly -- in strong this that the Advanced of where Sasan revenue So areas the such it so are in customer -- area recurring we

So guide year. component confidence one that we is next giving for as us

projects something new ecosystem and customers. platform product our core get they that we The how SMBs. more and themselves, our And products paid that their they makes business. they to lives pay second on they the how importance how access much to how their made have grow take aspect relevant an to in is get to This it's in of their business, the to employees, important our tremendous run improvements of capital that is

is what's the that Small and all Group. baked into we Self-Employed the provided Business that for guidance So

that we want you the shared GenAI. our were GenAI, we not all today. is that baked accelerator very reliant asked You I on be to with a for guidance it question if clear. reiterate we will into be an believe business, but and

Alex Zukin

factory lot, the very in-depth well. Super explanation. talent It alive is Thanks and clear. No Sandeep was doubt and Sasan. a

Sasan Goodarzi

you, Thank Alex.

Operator

take our question We'll Mark next from with JPMorgan. Murphy

Your line is open.

Unidentified Analyst

Hi, for and Credit customers have on Karma, begin this specifically customers Congrats of to subprime taking near-prime the the in just dig to wanted for focused and Murphy. as relates on on is my in [indiscernible] the kind pursue to opportunity Thanks. it quarter Mark you thanks prime to question. I on historically? guys to addition

Sasan Goodarzi

users, it's you your Yes, area question. Thank because you focus we and at why the for monthly really, and just after traditionally customers have well, And prime and a lot these that really know we team is platform we developed and a our subprime solve prime. on we've customers. capabilities these past in the have Credit merged of Karma prime a focused Mint near engaged to very the which for least for third big prime for Yeah. it's platform, they're And look us of going our context, sort active when the of customers. and

redesigning two the benefit about the find very geared we customers so think, big been Karma in There's understanding to looking -- and that on really been very for last for beyond been to like whole year, we customers app multiple be of working, that in cohort what now And are of And things with they're certain are been I the their excited is working a things we're the number enable Credit of launching Prime you. because sharing One really towards a know has and actually to customers. we've app experiments able midst we've of that have of needs, prime running redesign. everything almost them with sort that proactively. the and

is more of X. we second experience The again, that, will unveil September GenAI the is

something Prime to that included and those going it's very customers Prime moment I we're of possible which None these is we've something is things that excitement that from gives of excited two around shared us sort customers forward, a not the in our what monetization but a And lot about. combination guidance, of perspective. benefited ago around of a what's serve

Unidentified Analyst

the Thanks insight. for

about Looking forward it. to more learning

Sasan Goodarzi

you. Thank Yep.

Operator

Sills Our comes of next with from Bank America. Brad question

line Your is open.

Brad Sills

taking so the of prepared Sasan, Consumer. sounds within to well. exciting much with like and wanted perspective coming as one possibilities you've lot of the Would more Business and just the that here fact Thanks kind ask that Intuit coming, your for question. looking get about on you're to to underpinnings on well because It data. AI learning platform that. things Wonderful. Small A some alluded is where to forward of here here capabilities from? love here of the I

iterate So where Intuit any coming to to from way such looking you're learning is as on we're the just to more curious, that AI forward that able color about.

Sasan Goodarzi

you question. for Thank your shift when a we start five Yes. ago to I'll accounting which tax years platform, from back the far our on to financial you a meaningful and small just that solve declared the customers for businesses to was daily powering basis. really company is taking strategy platform of prosperity a to problems really very a consumers important set a in of role global and played more with

both we that we that about to their driver was that Karma Mailchimp, was five that And the data, that in that declaration of acquisition made more huge about a will for what around strategic customers, could success. the we benefit AI fact, going core leverage fuel we data and know in when be we acquisition on ensued, one was to essence, Credit When and their the talked shift. time bets because to data of lot making made at and the

ago even machine this, and focus and learning been five data a has decade-long -- years of So declaring Intuit.

it code our way is about about what set be making data, cleaning then language which TurboTax, a it's acquisitions sure us AI, and -- two in it in propelled those a and it's decade-long XX investments the and that takes knowledge have machine our been advantages the been data between a data in years. the relationship forward have decade-long of investments really rules where usable data and the engineering, turns natural and think used in specifically and can you in investment when in processing, So learning structured

that be a And rather which by do not work is then of ago, started we trained it's to GenAI. on in with a of gets to way, of data, investments, large several data, language overnight. those something investment. Rather years GenOS, couple what then do Operating and than kind revolutionary, work your that's things a for customers' our done humanize done GenOS, for where launched financial years we consumer, the manage you us models you finances our future than is creating to create able to we which punch your way do the to the Intuit and customers which in to the you. is things, ultimately personalize your control that the are in really put that primarily This having is And you When for line run AI to we work you business, is you. as we are have proprietary couple it want to power prosperity, is System, own allows you Generative June, what which can which

taste business in choices And But your whether right with Credit your forward and you help of side help thing have on able control, be you a to your put front side. you of cash in to manage always the always tax flow, you. and You're for move and the you the you same customers goes want decision. run not the we grow or Karma

really customers. So entire and decade-long years exciting And galvanized when five possible. had for real, gets have declared about to a for done company about five we're things do that's -- that opportunity us much the that's excited strategy. And tripled very years We it's And now ago focus. [future declared our it energized our amazing what's so we we on -- here. what's down the (ph) we an very we ago is of enormous you] what really that

And I followed can Intuit's Day, do and real you'll so join the for another the world for good we advertisement, that future. create by Investor to going for September Innovation X a feel us Day, are get

Brad Sills

Sasan. Thanks, it. to forward Looking

Sasan Goodarzi

welcome. You’re

Operator

take with last question Oppenheimer. Scott Schneeberger We'll our from

line open. is Your

Scott Schneeberger

Welcome The one very clarification. consumer, just And Sandeep. a high Sasan. good on Thanks and a one, have very couple level much. I -- afternoon,

first is on... the So

Sasan Goodarzi

Scott, you us. cut out on

Kim Watkins

you can back? bring Raiza, try him to

Operator

Scott. Thanks,

open. line Your is

Scott Schneeberger

Sasan, Thanks. me? can hear you

Sasan Goodarzi

don't We can you. again, now. if you we Yes, lost mind over start

Scott Schneeberger

Absolutely. Thanks.

on quick two So consumer.

price volume First, mix. and

given wise? for from anything fiscal or the curious trends in you. XXXX extension you the into and we fiscal season, going Anything 'XX that And of to post-tax the season consideration your in then Should Just years? just see that's to extension a did 'XX interesting beyond related material of what the you recent Sandeep, see? with California? Thank shift

Sasan Goodarzi

Sure.

business about tax Let all lean to data way and me comes it continue earlier, recognizing question volume would and your into driven. full really into Live, I say TurboTax mix AI start service, with into described around with it's TurboTax. was to what leaning the I which assistance, leaning think

that's come than of from You're the going just ARPC to opportunity. the see nature volume, and more

is million-plus there are $XX spend. in of XX and people the segment billion that Now there's assisted

So a there's and both opportunity volume an opportunity. ARPC

is Just from years, to -- way, to answer, one-year get going you're a we're looking both next ARPC. by our get more at matter, not the view, this going XX the

October to season, that's seeing And in month the weird I'll even I California customers gotten to very as extended have got from and been with well. here let they jump many on what they're and which is their extension states file we're in confused just July that state. mean to Sandeep

not everybody you company yet. to there's When is at has more level, but the not it's net-net So it at filed look file. material, really

Sandeep Aujla

not our that's material great by on a extensions -- unique QX. It's been It's saw that for of the us And also deal basically that’s a the behavior last Scott. I'll answer, we remind But also year, taxpayer. taxpayers.

So to that's in at you look something as mind keep QX. also

Scott Schneeberger

Thank you, both.

Sasan Goodarzi

everybody. right, All

brings Q&A or questions an that to our end. think I

September good Bye, us. We your for X to care. you at and Thank seeing forward the wonderful you for everybody. our thank -- Be look time questions. So Investor Take with you spending safe. Day.

Sandeep Aujla

Thank you, all.

Kim Watkins

Goodbye.

Operator

This Ladies today's and gentlemen. call. Thank you for participating. concludes conference

Intuit (INTU) 24 Aug 232023 Q4 Earnings call transcript